RERA Delay Compensation: Common Buyer Pitfalls and How to Assert Your Rights

The possession date in your builder-buyer agreement has passed, and the flat is not ready. What does the Real Estate (Regulation and Development) Act, 2016 (RERA) give you?

What RERA gives a homebuyer when possession is late

• Refund or delay interest (section 18). If the promoter misses the agreed date, you can withdraw and take a refund with interest and compensation. Or you can stay in the project and receive interest for every month of delay until possession.
• Interest rate. State rules fix it. In many states it is a set margin over the State Bank of India’s highest marginal cost of lending rate. Check your state’s rules.
• Misleading advertisements (section 12). If you relied on a brochure or advertisement that was false, you can claim compensation.
• Structural defects (section 14(3)). Defects reported within five years of possession must be fixed within 30 days. If not, you can claim compensation.
• Information (section 19). You are entitled to see sanctioned plans, the stage-wise schedule and project account details.

Common pitfalls for homebuyers

• Signing a one-sided agreement. Read clauses that let the builder change the area, the plan or the date at will.
• Losing the paper trail. Demand letters, receipts and emails prove the dates that interest depends on.
• Waiving rights by mistake. Do not sign a settlement or a “full and final” letter until you understand what you give up.
• Taking possession blindly. Check that the occupancy certificate is in place and inspect the flat before you sign a possession letter.
• Choosing the wrong forum. A buyer generally cannot pursue the same relief in two forums. Decide with advice.
• Missing the 2026 extensions. Some RERAs have extended project timelines by four months. See our update on state RERA directives.

How to assert your rights, step by step

1. Gather the agreement, payment receipts, demand letters and the project’s RERA registration number.
2. Check the state RERA website for the project’s status and its quarterly progress reports.
3. Send a written notice stating what you want and by when.
4. File a complaint with the state RERA. The Authority decides refund and interest. The Adjudicating Officer decides compensation, as the Supreme Court explained in Newtech Promoters.
5. If the order is challenged, the appeal lies to the Appellate Tribunal. A promoter must first deposit the amount due to the buyer (section 43(5)).

For the filing process itself, read our guide on how to file a RERA complaint.

Key takeaway

Delay interest runs from the possession date in your agreement. Keep every document, and put every demand in writing.